ON-THE-GRID SOLAR - FOR YOUR HOME & BUSINESS

What is On-The-Grid-Solar?

The new method of solar photovoltaic installationis to connect customer solar arrays to the utility grid. This eliminates the significant expense of battery storage. Electricity produced by the solar panels, over and above what is being used onsite, flows back into the electrical utility grid and your meter runs backward.

The beauty of the system, dollar wise, is that the disadvantage of PG&E small baseline kWh allotments, coupled with the tier/peak rate penalty system that results in such high utility bills, becomes an advantage for the utility customer with a solar PV system because:

PG&E must buy back power at the same rates that they charge for a given time frame and

Solar panels are producing the most electricity during the highest rate time frames (daytime summer high rates and peak usage).

The result is that, even though the solar panels don't produce as much electricity as a customer actually uses during a whole year, a properly sized PV array generating at premium rates can completely eliminate utility bills. With the new financing options available, one can even finance the system for the amount of the utility bill, so there is no increased out-of-pocket expense. After the loan is paid off, the system results in positive cash flow by way of little or no utility bills (see Net Metering Section below).

SOLAR SYSTEM SIZE - RESIDENTIAL & COMMERCIAL

Residential - What Size Solar System Do I Need?

Thern Electric & Solar residential power systems require approximately 100 sq. ft. of panel area to generate 1 kilowatt of electricity. An average 2,500 sq. ft, single-family home uses about 5,000 kilowatt-hours of electricity per year. A 3 kW (AC) system, using a 300 sq. ft. area, will generate nearly all of the electricity required for such a home on an annual basis. Whether you are concerned about significantly reducing your CO2 emissions to help fight global warming, or concerned about the prospect of paying ever-increasing utility bills, solar PV offer real solutions.

Residential System CostOn-the-grid solar systems (systems that do not require batteries) cost between $5-7 per watt installed. The exact system cost will depend upon the ease of the installation and access for roof mounted or ground mounted systems. A 3kW system that would power a typical California residence with good southern exposure will cost between $15,000 and $21,000 installed. After taking into account the California Cash Rebate and the Federal Solar Investment Tax Credit of 30%, the net cost of these systems ranges from approximately $13,545 to $15,645.

Commercial - What size solar system?

Solar Energy for Business is a smart solution: wineries, hotels, commercial buildings, retail stores and many others. Today, more and more business owners are making the decision to go solar. The benefits of solar for your busines are substantial:

The interest on your solar loan is tax deductible. The interest deduction calculated is averaged over 360 months.

This example is for a 15 year loan -beginning with year 16, the savings to the customer would be little or no electrical bill payments.

Electric Utility Rate Inflation in California: The Really Big Savings

The biggest savings from installing a solar electric system will be realized in future years. The historical electrical prices graph shown below is based upon rate data from the California Public Utility Commission. As you can see below, average electric rates have increased from approximately $0.02/kilowatt-hour in 1970 to $0.16/ kilowatt-hour in 2001. That is an average rate of increase of 5.5% per year. By investing in a solar system, you can stabilize your electricity costs and shield yourself from such utility rate hikes.

The Cost of Electricity in California - The Penalty Zones

The electric utility companies in California have adopted a complex tiered electric rate structure. This electric rate schedule establishes a 'baseline' rate for all electric usage each month. Usage up to the baseline amount is charged one rate, and usage above baseline is charged at a series of increasing tiered rates.
Residential customers who exceed their baseline quantities face steep penalty rates The table below shows the rate structure for residential Pacific Gas & Electric customers.

Current Electric Rates & Penatlies

Tier#

Percent of Baseline Consumption

Price per kWh

Tier 1

Up to the baseline amount

11.9¢

Tier 2

Electric Usage from 101% to 130%

11.94¢

Tier 3

Electric Usage from 131% to 200%

21.5¢

Tier 4

Electric Usage from 201% to 300%

30.34¢

Tier 5

Electric Use exceeding 300%

34.97¢

Comparison of Rates (price per kW) Over 30 Years

The Bottom Line

The graph below shows projected savings for a typical 3kW residential solar system. With financing, the homeowner would not need to spend any cash up front to pay for the system, and would get a tax benefit in the first year equal to 30% off the system cost. Over the life of the system, the homeowner would save nearly $38,000 in after-tax ~monthly payments. Solar is one of the best investments you will ever make.

Thern Electric & Solar Will Obtain the Best Pricing for Your System

Because Thern Electric & Solar is not affiliated with any manufacturer and thus required to quote that manufacturers products, and because the prices of the different manufactures continually varies, we design your system using the latest best materials prices, which we pass on to you our customer.

For homeowners who would like a quote on a system, please print out our form.